- Netflix is considering entering the video game market.
- The company plans to offer a bundle of games similar to Apple’s online subscription offering.
- The company is looking to hire gaming industry executives.
After dominating the streaming market for a long time despite strong competition from other rivals, Now company plans to enter the video game industry.
Netflix is one of the largest streaming site for movie and television series. With such huge popularity among the industry, it can easily be inferred that Netflix segments its users based on psychographics and not on demographics. In fact, there are a total of three elements that are making all the difference.
1. Affordable price
3. Original content.
Reason Behind Netflix New Move?
1. The total gaming market now exceeds $300 billion, according to an April study by consulting firm Accenture, Netflix’s move would open a new and highly lucrative stream of revenue for the streaming giant.
2. Netflix is no stranger to video games it has aired shows based on video game properties such as Castlevania, and Dragon’s Dogma.
3. It has also created games based on shows Stranger Things and La casa de Papel (Money Heist).
Gregory Peters, Netflix’s COO and chief product officer said:
“There’s no doubt that games are going to be an important form of entertainment and an important sort of modality to deepen that fan experience, So we’re going to keep going”.
Netflix plans to hire executives to oversee its expansion into the video game market. Netflix chief financial officer Spencer Neumann spent time with video game developer Activision Blizzard before launching their services.
The subscription-based video game service may be similar to Apple Arcade, which gives subscribers unlimited access to its selection of games. It has not yet been decided whether Netflix will develop games itself or through an outside publisher. However, the company confirmed that games will not contain advertising.
Netflix gained its initial competitive advantage, not through a new business model, but through a combination of known business models. Employing big data analysis in the production of original content is certainly a step forward in this industry that will redefine it for good.
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